News broke yesterday that the central bank of Germany was planning to repatriate its gold reserves from the United States and France. Glenn believes this is a very big sign of coming economic reset, something he has been warning about for a long time.
According to Bloomberg, "The Bundesbank will repatriate 674 metric tons of gold from vaults in Paris and New York by 2020 to restore public confidence in the safety of Germany’s reserves."
The relocated gold, worth about $36 billion, will be coming from the Banque of France (374 tons) and the New York Federal Reserve (300 tons). Germany plans to begin the repatriation this year and finish by 2020. The gold being held at the Bank of England will not be touched.
"When I said they would do this three, five, six years ago - that you would know the end of the currency was near. The end of the Euro was near and the end of the United States currency was near because people would start to repatriate and they would demand their gold back. They would demand their assets back," Glenn said when he read the story.
At the same time that Germany announced they were repatriating their gold, Japan announced they would be devaluing their currency to make themselves more competitive.
Japan is acting to weaken its currency and there is a danger that others will follow suit and foster a round of destabilising devaluations, Russian central banker Alexei Ulyukayev said on Wednesday."We're on a threshold of a very serious, confrontational actions in the sphere that is known ... as currency wars," the central bank's First Deputy Chairman told reporters.
Russia holds the G20 presidency this year, a forum at which currencies and their relative values is likely to surface.
"The recent decision by the new government of Japan regarding very protectionist monetary policy ... this is a course towards a sharp depreciation of the yen," Ulyukayev said.
"Let me tell you what I told my wife this morning," Glenn said. "Honey, do we have the cash on hand someplace? Someplace Buried? Someplace deep in the bowels of a place? Out of a bank?"
"Don't take all of your money out of the bank - but do you have money, do you have physical assets handy where you don't have to get it from the bank?" he asked.
"When the reset comes it will come quickly. I'm not saying it's tomorrow or next week. I don't know when it will be. It could be five years down the road. But it will come. This is a very big sign," Glenn warned.
Glenn also predicted that the Germans would realign themselves with the Russia as they are the only ones who are using their own resources and not spending themselves into oblivion.
"I'm telling you while the Russians are dirtbag, criminals and dangerous - the Germans will look to the Russians and say you know, 'the West is destroying themselves. At least the Russians aren't those communists that France and everybody else are going to.'"
" The Germans will disconnect from the West. Because the west will hold them responsible to prop up the rest of the world just like we are. The Germans will switch sides. Mark my words. It's coming," Glenn said.
